- FTC investigates some crypto firms alleged of some possible misconduct.
- The spokesperson was reluctant to reveal the names of the firms or the reasons for the action.
- The agency also denounced that the cause is not the misleading advertisements of the firm as reported earlier.
Reportedly, the US Federal Trade Commission (FTC), designated to investigate allegations of fraudulent demeanor declared on Monday that some undisclosed cryptocurrency firms are under the agency’s surveillance for some “possible misconduct”.
Though the agency announced its decision to probe into the activities of the firms, the Federal Trade Commission Spokesperson was reluctant to reveal the name of the firms or the cause of the inquiry.
The spokesperson for FTC said:
While we can’t comment on current events in the crypto markets or the details of any ongoing investigations, we are investigating several firms for possible misconduct concerning digital assets,
Earlier this day, it had been reported that the firms were alleged for their misleading advertisements. The report claimed that Juliana Gruenwald Henderson, the FTC spokesperson stated that the cause of the investigation is some “possible misconduct concerning digital assets”.
However, FTC denounced that the report has been misleading, declining to provide any further details of the cause and effect of the probe.
Since the fall of FTX, the whole crypto world has been under pressure, with fluctuations in coin prices, causing troubles among the traders.
Consequently, various governments have initiated procedures to bring regulations to the crypto field, to assure security for traders. For instance, the government of Kenya has introduced a system of taxation in crypto exchanges.
Significantly, the Securities and Exchange Commission has also taken regulations in the use of crypto assets, to the extent that it charged the celebrity Kim Kardashian for promoting a crypto token on her Instagram page.
In conclusion, as FTC has also taken steps towards probing into many crypto firms, the current announcement can also be another move towards the regulation of crypto.
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